Solved: Where do you enter payments received from business interuption insurance claims?
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Where do you enter payments received from business interuption insurance claims?

 
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Where do you enter payments received from business interuption insurance claims?

Yes, reimbursement claims on a Business Interruption Insurance policy are taxable as ordinary business income. Depending on your type of business, this income may be entered wherever you would report "other income."

The IRS considers these payments to be a replacement of income that the business would have earned during the event that caused the interruption. Also, most business expenses continue to accrue and/or be paid, and may actually exceed the amount of the reimbursement.

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Level 7

Where do you enter payments received from business interuption insurance claims?

Yes, reimbursement claims on a Business Interruption Insurance policy are taxable as ordinary business income. Depending on your type of business, this income may be entered wherever you would report "other income."

The IRS considers these payments to be a replacement of income that the business would have earned during the event that caused the interruption. Also, most business expenses continue to accrue and/or be paid, and may actually exceed the amount of the reimbursement.

View solution in original post

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